Tatts Group announced a 25.7 percent rise in net profit after tax for FY15, driven by a strong performance in its lottery business.
After tax profit on a statutory basis rose to $252 million, which on a continuing operations basis represented a 12.9 percent profit lift to $255.8 million.
The company said this was achieved despite lower lottery jackpots, a more competitive wagering landscape and the business going through major changes under its ongoing renewal program.
“The 2015 financial year was a great one for Tatts. Our lotteries business booked a record profit result, our digital initiatives gained strong traction both in wagering and lotteries and, at the latter part of the year, this was sealed off with the successful re-launch of our wagering operation as UBET,” said Robbie Cooke, Tatts’ CEO and managing director.
Revenues from the company’s lotteries business were up 2.8 percent to $1.98 billion, which Cooke said was “no small feat given the softer jackpot run in the year.”
“The hidden gem in this performance was the operational leverage the business displayed – growing the 2.8% revenue increase to a 5.9% lift in EBIT to produce a record $287.5 million result.”